Carter’s, Inc. Acquires Skip Hop Holdings, Inc.
February 23 2017 - 6:10AM
Business Wire
- Acquires rapidly growing global
lifestyle brand for families with young children
- Complements Carter’s leading market
share in young children’s apparel
Carter’s, Inc. (NYSE:CRI), the largest branded marketer in the
United States and Canada of apparel exclusively for babies and
young children, today announced that it has acquired Skip Hop
Holdings, Inc. (“Skip Hop”), a global lifestyle brand for families
with young children, from Fireman Capital Partners, a
consumer-focused private equity firm.
Skip Hop offers families with young children essential products
that are differentiated from a design and function perspective. Its
product portfolio includes distinctive offerings across multiple
categories, including diaper bags, kid’s backpacks, travel
accessories, home gear, and hardlines for playtime, mealtime, and
bathtime. Skip Hop products are distributed in more than 5,000
doors in the United States and more than 60 countries.
“Skip Hop has built a strong reputation for innovative,
essential core products for families with young children,” said
Michael D. Casey, Carter’s Chairman and Chief Executive Officer.
“Its product offering nicely complements our Carter’s brand. We
believe we have a wonderful opportunity to leverage our marketing,
distribution, and supply chain capabilities to enable significant
growth for the Skip Hop brand. We look forward to working with Skip
Hop founders, Michael and Ellen Diamant, and their team to build on
their long track record of success.”
The acquisition of Skip Hop is expected to be accretive to
Carter’s fiscal 2017 adjusted earnings per share, excluding the
impact of non-recurring transaction or integration-related
expenses.
“We are very excited to join the Carter’s team,” said Michael
and Ellen Diamant, founders of Skip Hop. “We believe Carter’s is a
terrific cultural fit for Skip Hop, and we look forward to working
with Carter’s to drive Skip Hop to its full potential.”
The transaction has been structured as an acquisition of all of
the outstanding equity of Skip Hop. The total purchase price is
$140 million in cash consideration, subject to a working capital
adjustment, plus a potential future payment of up to $10 million
contingent upon the achievement of certain fiscal targets in
2017.
J.P. Morgan Securities LLC acted as financial advisor and King
& Spalding LLP acted as legal counsel to Carter’s in connection
with the transaction. Harris Williams & Co. served as exclusive
financial advisor and McDermott Will & Emery LLP acted as legal
advisor to Skip Hop.
About Carter’s, Inc.
Carter’s, Inc. is the largest branded marketer in the United
States and Canada of apparel and related products exclusively for
babies and young children. The Company owns the Carter’s and
OshKosh B'gosh brands, two of the most recognized brands in the
marketplace. These brands are sold in leading department stores,
national chains, and specialty retailers domestically and
internationally. They are also sold through nearly 1,000
Company-operated stores in the United States and Canada and online
at www.carters.com, www.oshkoshbgosh.com, and
www.cartersoshkosh.ca. The Company’s Just One You, Precious Firsts,
and Genuine Kids brands are available at Target, and its Child of
Mine brand is available at Walmart. Carter’s is headquartered in
Atlanta, Georgia. Additional information may be found at
www.carters.com.
Cautionary Language
This press release contains forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 relating to the Company’s future
performance, including, without limitation, statements with respect
to the Company's acquisition of Skip Hop, as well as the Company’s
strategies and future operating results for the Skip Hop business
and the Company. Such statements are based on current expectations
only, and are subject to certain risks, uncertainties, and
assumptions. Should one or more of these risks or uncertainties
materialize or not materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those
anticipated, estimated, or projected. Factors that could cause
actual results to materially differ include: various risks relating
to the Skip Hop business, including the Company's ability to manage
its growth, to develop and grow the Skip Hop business in terms of
revenue and profitability, and its ability to realize any benefits
from Skip Hop; the ability to integrate Skip Hop into the Company
with no substantial adverse effects on Skip Hop’s or the Company's
existing operations, employee relationships, vendor relationships,
customer relationships or financial performance; the acceptance of
the Company's products in the marketplace; changes in consumer
preference and fashion trends; seasonal fluctuations in the
children's apparel and accessory business; negative publicity; the
breach of the Company's consumer databases; increased production
costs; deflationary pricing pressures and customer acceptance of
higher selling prices; a continued decrease in the overall level of
consumer spending; the Company's dependence on its foreign supply
sources; failure of its foreign supply sources to meet the
Company's quality standards or regulatory requirements; the impact
of governmental regulations and environmental risks applicable to
the Company's business; the loss of a product sourcing agent;
increased competition in the baby and young children's apparel and
accessories market; the ability of the Company to adequately
forecast demand, which could create significant levels of excess
inventory; failure to achieve sales growth plans, cost savings, and
other assumptions that support the carrying value of the Company's
intangible assets; and the ability to attract and retain key
individuals within the organization. Many of these risks are
further described in the most recently filed Annual Report on Form
10-K and other reports filed with the Securities and Exchange
Commission from time to time under the headings “Risk Factors” and
“Forward-Looking Statements.” The Company undertakes no obligation
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events, or
otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20170223005656/en/
Carter’s, Inc.Sean McHugh, 678-791-7615Vice President &
Treasurer
Carters (NYSE:CRI)
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